business
Monday Oct 18 2021
By
BDBusiness Desk

Gold price surges to Rs119,700 per tola in Pakistan

By
BDBusiness Desk
An employee sorts gold bars in the Austrian Gold and Silver Separating Plant Oegussa in Vienna, Austria, December 15, 2017. — Reuters/File
An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017. — Reuters/File

  • Bullion once again invites investors’ attention with the return of inflationary days, as its price per tola jumps by Rs1,700.
  • Gold rates in Pakistan are around Rs500 below cost compared to the gold rate in the Dubai market.
  • Yellow metal gains attention due to the uptrend in commodity prices in the global market, rupee depreciation.


KARACHI: Gold has once again invited investors’ attention with the return of inflationary days in Pakistan, as the safe-haven shot up by Rs1,700 per tola to Rs119,700 on Monday.

Gold prices in the local bullion market jumped Rs1,700 per tola and Rs1,457 per 10 grams to reach Rs119,700 per tola and Rs102,623 per 10 grams.

The precious commodity closed at Rs118,00 per tola and Rs101,166 per 10 grams on Saturday.

The yellow metal gained attention due to the uptrend in commodity prices in the global market and partly due to rupee depreciation.

Pakistani currency hit a new all-time low of Rs172.78 against the US dollar in the interbank market in the wake of a soaring current account deficit.

The country also imports the precious metal to meet the local demand. Gold dropped $4 to $1,763 per ounce in the international market, according to the All Sindh Saraf and Jewellers Association (ASSJA).

Analysts say that past practices suggest that people used to take aggressive positions in gold in inflationary days. However, investors —especially young investors — are now taking aggressive positions in cryptocurrencies to make quick gains.

It is pertinent to mention that the gold rates in Pakistan are around Rs500 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,430 per tola and Rs1,226 per 10 grams.